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Wednesday, March 30, 2011

ndices Close Higher, Face Key Overhead Resistance


The stock market indices had another up-day today. The day started out with a big gap to the upside. The indices then sold sharply, but held support, and then came on again to new highs for the entire rally by midday. In the afternoon they consolidated back and forth and took a late dip, but stabilized toward the end.

Net on the day, the Dow was up 71.60 at 12,350.61. The S&P 500 was up 8.82 at 1328.26. The Nasdaq 100 up 10.98 at 2336.52.

Advance-declines were a little less than 3 to 1 positive on New York Stock Exchange and about 2 1/2 to 1 positive on Nasdaq. Up/down volume was about 3 1/2 to 1 positive on New York, with total volume of about 840 million shares. Nasdaq traded about 1.8 billion shares and had about an 11 to 6 positive volume ratio.

TheTechTrader.com board was mostly higher, with quite a few large gainers today. Leading the way today was new issue QIHOO 360 TECHNOLOGY CO. LTD. (QIHU), which opened at 14.50 and closed at 34, up 19.50 today.

Other large gainers of note included Oxford Industries Inc. (OXM), up 8.36 to 33.37, a 33.6% gain today. Clean Energy Fuels Corp. (CLNE) jumped 1.47 to 16.40, and Ambassadors International Inc. (AMIE) 1.16 to 2.33, a nearly 100% gain today. VirnetX Holding Corp (VHC) gained 1.23 to 20.52, low-priced Evergreen Energy, Inc. (EEE) 36 cents to 3.09, and Coffee Holding Co.Inc. (JVA) 32 cents to 6.02.

In addition, InterDigital, Inc. (IDCC) advanced 4.46 to 47.97, Chipotle Mexican Grill, Inc. (CMG) 6.08 to 272.20, and Amazon.com Inc. (AMZN) 4.80 to 179.42. Jazz Pharmaceuticals, Inc. (JAZZ) was up 1.00 to 33.11, SodaStream International Ltd. (SODA) 1.49 to 44.25, and Travelzoo Inc. (TZOO) 1.80 to 68.48, reaching as high as 69.79 today.

Some of the low-priced energy stocks did well today. Cobalt International Energy, Inc. (CIE), one of our top picks for the year, was up 85 cents to 16.65, a new all-time high. GeoResources, Inc. (GEOI) in that group rose 1.92 to 30.64, reaching 30.99 at one point this morning. GMX Resources Inc. (GMXR) closed up 52 cents to 6.22, a gain of 9%, and Hercules Offshore, Inc. (HERO) added 42 cents to 6.32, a 7% gain.

Other gainers of note included 3D Systems Corp. (TDSC) up 4.42 to 48.72, ViroPharma Inc. (VPHM) 1.00 to 20.20, SureWest Communications (SURW) 1.81 to 14.04, and Smart Technologies Inc. (SMT) 61 cents to 10.47, or 6%. Silicon Graphics International Corp. (SGI), one of our swing trades, reached 20.26 today, up 77 cents to 19.96. Low-priced RXi Pharmaceuticals Corporation (RXII) rose 26 cents to 1.52, more than 20% today.

Revlon, Inc. (REV) jumped 1.00 to 15.87. New swing trade position Rackspace Hosting, Inc (RAX) was up 3.27 to 42.98, Puda Coal Inc. (PUDA) 85 cents to 12.71, Pain Therapeutics Inc. (PTIE) 1.13 to 9.72, Procera Networks, Inc. (PKT) 71 cents to 10.25, and Onstream Media Corp. (ONSM) 36 cents to 1.68, a 27% gain. In addition, Nuance Communications, Inc. (NUAN) gained 1.29 to 19.55, or 7%, and MELA Sciences, Inc. (MELA) 59 cents to 3.76, a gain of nearly 19%.

On the downside, the only point-plus losers on our board today were Apple Inc. (AAPL) down 2.33 to 348.63, continuing to negative divergence, and KV Pharmaceutical Co. (KV-A), down 1.46 to 5.65, but more than 2.00 off its low.

Ultra-short ETF Direxion Daily Financial Bear 3X Shares (FAZ) was down 1.14 to 39.98, and Direxion Daily Small Cap Bear 3X Shares (TZA) 1.44 to 35.48.

Stepping back and reviewing the hourly chart patterns, the indices gapped up at the opening, pulled back sharply and held, and then rallied to new highs for the day by midday. But that was it as they couldn’t get back through those highs at the end of the day and rolled over into the close.

Still, they were up decently in another nice session, but now are overbought and at key overhead resistance, which may be tough to get through here.

We’ll see how it goes tomorrow.

Good Trading!

Harry

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